Bill Summary
The Joint Resolution is a formal legislative act by the U.S. Congress that expresses disapproval of a specific rule issued by the Bureau of Consumer Financial Protection (CFPB). This rule pertains to the definition of "larger participants" in the market for general-use digital consumer payment applications. The resolution states that Congress does not approve this final rule, which was published in the Federal Register on December 10, 2024, and as a result, the rule will have no legal force or effect. Essentially, this resolution is a mechanism for Congress to reject regulatory measures that it finds objectionable.
Possible Impacts
The Joint Resolution disapproving the rule by the Bureau of Consumer Financial Protection (CFPB) concerning the definition of larger participants in the market for general-use digital consumer payment applications can have various effects on people. Here are three examples:
1. **Consumer Access to Services**: By disapproving the rule, Congress may limit the CFPB's ability to regulate larger digital payment applications. This could result in fewer protections for consumers using these services. For instance, if larger companies are not required to adhere to specific regulatory standards, consumers may face increased risks, such as data breaches or unfair fees, without adequate oversight.
2. **Market Competition**: The resolution might hinder the CFPB's capability to promote competition among digital payment companies. If larger participants are not defined and regulated, smaller companies may struggle to compete against established players that can operate without the same level of scrutiny. This could lead to reduced innovation and fewer choices for consumers, as the market becomes dominated by a few large entities.
3. **Regulatory Uncertainty**: The disapproval of this rule could create uncertainty in the financial sector regarding compliance and regulation. Companies operating in the digital payment space may face confusion about which rules apply to them, potentially leading to inconsistent practices. This uncertainty can affect consumers indirectly, as businesses may be reluctant to invest in improvements or expansions, which can ultimately limit the services available to consumers.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S.J. Res. 28 Enrolled Bill (ENR)]
S.J.Res.28
One Hundred Nineteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty five
Joint Resolution
Disapproving the rule submitted by the Bureau of Consumer Financial
Protection relating to ``Defining Larger Participants of a Market for
General-Use Digital Consumer Payment Applications''.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That Congress disapproves the
final rule submitted by the Bureau of Consumer Financial Protection
relating to ``Defining Larger Participants of a Market for General-Use
Digital Consumer Payment Applications'' (89 Fed. Reg. 99582 (December
10, 2024)), and such rule shall have no force or effect.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.